Correlation Between Samsung Electronics and Identiv
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Identiv at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Electronics and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Identiv, you can compare the effects of market volatilities on Samsung Electronics and Identiv and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Electronics with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Identiv.
Diversification Opportunities for Samsung Electronics and Identiv
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Identiv is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Samsung Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Electronics Co are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Identiv go up and down completely randomly.
Pair Corralation between Samsung Electronics and Identiv
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.08 times less risky than Identiv. The stock trades about -0.01 of its potential returns per unit of risk. The Identiv is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 478.00 in Identiv on January 18, 2025 and sell it today you would lose (196.00) from holding Identiv or give up 41.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Identiv
Performance |
| Timeline |
| Samsung Electronics |
| Identiv |
Samsung Electronics and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Identiv
The main advantage of trading using opposite Samsung Electronics and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Identiv can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Identiv will offset losses from the drop in Identiv's long position.| Samsung Electronics vs. BRAEMAR HOTELS RES | Samsung Electronics vs. COSTCO WHOLESALE CDR | Samsung Electronics vs. MELIA HOTELS | Samsung Electronics vs. SUN ART RETAIL |
| Identiv vs. JIAHUA STORES | Identiv vs. MAVEN WIRELESS SWEDEN | Identiv vs. bet at home AG | Identiv vs. PICKN PAY STORES |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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